advice needed on starting business please

[chainsaw365]

Hi everyone,

First of all an apology in case this is in the wrong section of the site, I'm new to this forum but this seemed the most applicable area.

I am looking for some advice, and I hope someone may be able to provide me with some answers. This may be a bit long winded, so bear with me!

I graduated from university with a degree in wildlife conservation last May, and struggled to find work at first because of a lack of practical experience in the sector (despite having more voluntary, part time etc. than many on my course!) While unemployed, I taught myself to chainsaw carve to gain a new skill, but didn't sell many pieces because they weren't very good!

I have now found work for a local company, but have continued carving in my spare time. At the moment, I produce 2-3 carvings a week, mostly simple mushrooms which sell for about £10 each. I sell these both direct to the public, and through a local garden centre which adds its own commission on to the price (so they sell for say £12, and I get £10).

At what point do I need to declare this to the taxman? Should I have done this already? Should I be registered as self employed, or not? I have decided that as of tomorrow I will buy a diary, and keep a note of all expenditure (petrol, wood etc) and sales. I may look at becoming fully self employed in the not too distant future, is there anything I could do to build up slowly?

I hope this makes sense, I have absolutely no idea about running a business but would like to learn! I looked on the business link website, but couldn't find any information that seemed to apply to me.

cheers,
Joe

 

[forget the hype]

If you have started trading then you need to inform the tax man (I think it is within 3 months of the day you first traded) if you dont, you'll get a fine.

Just contact an accountant and he will do it all for you. You won't have to pay anything up front to him and he will fill in all the forms and notify the inland revenue when you started trading (probably as a sole trader) You'll also most probably pay class 2 national insurance contributions (around £3.00 a week)

 

[estwig]

Do you produce any paperwork, mainly do you invoice or give your customers a receipt?

Do you get paid in cash?

If not, I wouldn't worry too much about a hobby that pays £20-£30.00 a week. If you are producing paperwork, then yes maybe you should look into making things a bit more official.

Re-do your post in the accounts section on here, them bean counters is very helpful, but they won't find your post here.

Bear in mind if you go looking for red tape, you will find it by the barrow load!

Good luck and welcome to UKBF

 

[Atilla]

If you have started trading then you need to inform the tax man (I think it is within 3 months of the day you first traded) if you dont, you'll get a fine.

Just contact an accountant and he will do it all for you. You won't have to pay anything up front to him and he will fill in all the forms and notify the inland revenue when you started trading (probably as a sole trader) You'll also most probably pay class 2 national insurance contributions (around £3.00 a week)

Beancounters work for free do they?

 

[forget the hype]

Not paying up front means you will pay when they do your end of year accounts. Did I really need to explain that?

 

[thebigIAM]

Shame about that rule over 15 posts before you put on your link, etc. I'd love to see some photos of your sculptures.

 

[chainsaw365]

well thanks a lot everyone, I guessed I don't need to worry too much at the moment as it's only paying £20 - £30 a week, but it could develop in the future!

At the moment, my carvings seem to be selling as fast as I can make them (I need to do this in daylight, and due to my work I have limited time to carve each week). This, combined with a couple of other odd jobs I have done (cutting up logs for various people) have made me consider the idea of becoming self employed. At the moment my main priority is to earn back the money I have spent on chainsaws (£400ish), safety kit (£100), petrol (going through 5 litres a week roughly), etc etc... once this is done I will have another think.

I will probably go and seek advice from someone face to face, I'm thinking of either a bank (they must have some sort of advisor?) or the Citizens Advice, possibly both.

Thanks a lot,
Joe

PS I don't have any photos of my carvings at the moment, as I don't think any of them have been worth photographing! However they have sold so I guess somebody liked them, next reasonable one I do I'll take a couple of pics

 

[gritbinsales]

you could get free logs from your local tree cutting company as they pay to dispose of such items

 

[chainsaw365]

you could get free logs from your local tree cutting company as they pay to dispose of such items

I've got quite a few logs this way already, local companies log up and sell for firewood the timber which burns well (ash, oak) and the rest tends to get chucked in a massive pile, from which I can help myself free of charge!

 

[estwig]

I will probably go and seek advice from someone face to face, I'm thinking of either a bank (they must have some sort of advisor?) or the Citizens Advice, possibly both.

No good mate, the bank will only try and sell you insurance and citizens advice is advice for citizens, not businesses.

If you want free face to face advice, Business Link are very good for start-ups.

 

[Toadstool Toys]

Business link and website advice like this.

 

[Victoria-Slinglady]

hello
i would advise using business link they have gone out of there way to help me they run free work shops were you can meet other people starting up. They will answer most questions at the end of a telephone or email.
good luck x x